To consider the relevant aspects of the draft Budget and updated Medium Term Financial Plan (MTFP) pertaining to remit of this Committee only.  Information relating to those aspects of the budget outside of the Committee’s remit will be considered by the other relevant Overview and Scrutiny Committees.  Members are requested to review the report and provide their comments, observations and recommendations in respect of the Executive’s proposals with particular reference to those aspects within the remit of the Committee, to the meeting of the Executive.

http://centralbeds.moderngov.co.uk/ieListDocuments.aspx?CId=577&MId=5232&Ver=4.

To reduce printing papers copies of the Executive report on the draft Budget and updated MTFP the reports are available online at the following address:-

Hard copies of these papers will only be provided on request in advance of the meeting.

Executive papers can also be accessed by using the mod.gov app on devices.

The Head of Financial Services introduced Executive Report that highlighted the financial pressures, proposed efficiency saving and public consultation timelines in relation to the Draft Budget and Medium Term Financial Plan (MTFP).  Members’ attention was drawn to appendices F and G which detailed the primary statutory provisions relevant to the services provided by each directorate and the Chief Finance Officer’s assessment of Council Reserves.

The Assistant Director Resources delivered a presentation that highlighted in detail the financial pressures and efficiencies proposed.

In light of the report and presentation, Members discussed the following in summary:-

·         The Draft Budget assumed a Social Care Precept of 2% over three years.  The Provisional Financial Settlement enabled a move to a 3%, 3%, 0% precept over the next three years and would create a reserve specifically for SCHH generated from the 1% increase to the ASC Precept.  In addition, the Council would receive a one off grant of £869K that would be reflected in the final budget.

·         Whether the provision for homelessness was adequate.  The Assistant Director for Housing reassured the Committee that the assumptions were based on best estimates. 

·         Concern that the Work Choice scheme subsidised by the Government would stop. The Assistant Director Resources advised that Economic Development colleagues were involved to help find a solution in conjunction with employers.

·         That the MANOP team continue in their search for development opportunities.

·         That officers continue to develop IT business systems and ensure they are fit for purpose

·         Support the concept of a Trading Company and noted a report be submitted to a future meeting of the Committee.

RECOMMENDED

The Committee:-

1.    Approves the approach to the draft Budget and Medium Term Financial Plan 2017/18 – 2020/21.

2.    Notes the areas and pressures of increased demand in what are demand led services and the work to meet the financial pressures.

3.    Urges any preventative work to try to reduce future demands wherever possible.

4.    Urges officers to consider any additional ways for businesses to support those under the Work Choice scheme.

5.    Urges the creation of an integrated workforce especially in relation to health and social care to improve the efficiency of our service.

6.    Recognises the need to ensure our business systems are fit for purpose and that essential information is capable of being shared between relevant parties with confidence.

7.    Looks forward to receiving a report on proposals for a Local Authority Trading Company and what advantages this might bring.

8.    Approves the draft budget as a basis for consultation.

To consider the relevant aspects of the draft Budget and updated Medium Term Financial Plan (MTFP) pertaining to remit of this Committee only. Information relating to those aspects of the budget outside of the Committee’s remit will be considered by the other relevant Overview and Scrutiny Committees. Members are requested to review the report and provide their comments, observations and recommendations in respect of the Executive’s proposals with particular reference to those aspects within the remit of the Committee, to the meeting of the Executive.

To reduce printing papers copies of the Executive report on the draft Budget and updated MTFP the reports are available online at the following address:-

http://centralbeds.moderngov.co.uk/ieListDocuments.aspx?CId=577&MId=5232&Ver=4

Hard copies of these papers will only be provided on request in advance of the meeting.

The Head of Financial Performance delivered a report highlighting financial pressures, proposed efficiency savings and public consultation timelines in relation to the Draft Budget and Medium Term Financial Plan (MTFP).

Members’ attention was drawn to appendices F and G which detailed the primary statutory provisions relevant to the services provided by each directorate and the Chief Finance Officer’s assessment of Council Reserves. Members were reminded of the importance of their understanding of each of these elements so that when making recommendations they were doing so on a fully informed basis.

In light of the report Members discussed the following in summary:-

·           That efficiency savings in relation to children’s centres were a key element of locality working and that any changes must meet the needs of a particular area.

·           That there were no immediate plans to further reduce funding for respite care.  The council had a commitment from the 2015/16 MTFP to ensure efficiencies in this area and was actively working through these with partners and parents.

·           That early intervention and close partnership working was essential in reducing need later on in a child’s life.

·           The need to ensure an effective and efficient procurement process.

·           The need for a challenging, efficient and attainable budget.

RECOMMENDED:-

1.         That the Committee acknowledge the financial challenges and proposed efficiencies presented, broadly supporting the Draft Budget and Medium Term Financial Plan.

2.         That the Executive consider increasing Council Tax by 3% for the Adult Care precept for two years with a 0% increase in the third year.

That the Executive seek the opportunity to secure and ring fence additional funding for Children’s Services.

To consider the relevant aspects of the draft Budget and updated Medium Term Financial Plan (MTFP) pertaining to remit of this Committee only.  Information relating to those aspects of the budget outside of the Committee’s remit will be considered by the other relevant Overview and Scrutiny Committees.  Members are requested to review the report and provide their comments, observations and recommendations in respect of the Executive’s proposals with particular reference to those aspects within the remit of the Committee, to the meeting of the Executive.

To reduce printing papers copies of the Executive report on the draft Budget and updated MTFP the reports are available online at the following address:-

http://centralbeds.moderngov.co.uk/ieListDocuments.aspx?CId=577&MId=5232&Ver=4

Hard copies of these papers will only be provided on request in advance of the meeting.

The Head of Financial Performance delivered a report highlighting financial pressures, proposed efficiency savings and public consultation timelines in relation to the Draft Budget and Medium Term Financial Plan (MTFP). Members’ attention was drawn to appendices F and G which detailed the primary statutory provisions relevant to the services provided by each directorate and the Chief Finance Officer’s assessment of Council Reserves. Members were reminded of the importance of their understanding of each of these elements so that when making recommendations they were doing so on a fully informed basis.

In light of the report Members discussed the following in summary:-

·           Proposed changes to Council Tax with overall support for a 4.75% increase, which included a proportion of ring fenced funding for Social Care provision.

·           Challenges identified within the report and the subsequent impact on services.

·           Members acknowledged the information within appendices F and G and declared satisfaction with the information they had been provided with.

RECOMMENDED that the Committee broadly support the Draft Budget and Medium Term Financial Plan including proposed increases to Council Tax.

The report proposes the Budget for 2017/18 and updates the Medium Term Financial Plan (MTFP) approved by Council in February 2016.

That the draft Budget for 2017/18 and the updated Medium Term Financial Plan 2017/18 – 2020/21 be approved as the basis for consultation with the Overview and Scrutiny Committees and other interested parties.

The Executive considered a report from the Executive Member for Corporate Resources that proposed the draft budget for 2017/18 and updated the Medium Term Financial Plan (MTFP).  It was noted that the Provisional Financial Settlement for Local Government had only been released on 15 December 2016 and that it had not been possible for the full implications of this to be incorporated within the Executive report.  This included the announcement that councils would be permitted to apply a Social Care Precept of up to 3% in 2017/18.

Further details were still expected from the Government on proposals for the 100% retention of National Non Domestic Rates by authorities. 

These issues and any other Government announcements, together with the outcome of the consultation, would be taken into account in the final budget proposals considered by the Executive on 7 February before  recommendations were made to Council.

In response to questions, the Executive Member for Social Care and Housing highlighted Appendix F, and drew attention to the Council’s specific statutory duties in relation to specific budget proposals.

In response to a question, the Executive Member for Corporate Resources explained the purpose of general and earmarked reserves and the implications of drawing on these.  Reserves had been reviewed and it was unsustainable to use reserves to fund reoccurring expenditure.

Reason for decision:  To enable consultation on the draft budget 2017/18 and MTFP 2017-2021, prior to recommendations being made by the Executive on 7 February 2017 to Council on 23 February 2017.

RESOLVED

that the draft Budget for 2017/18 and the updated Medium Term Financial Plan 2017/18 – 2020/21 be approved as the basis for the consultation with the Overview and Scrutiny Committees and other interested parties.

[NOTE: Cllr Mrs Barker and Zerny arrived during this item.]